Choicesuk Share Discussion Threads

[tsmith2] 18/4/2007 09:53

bletherer - excitement, you seen the trades today?

[jtcod] 18/4/2007 09:51

Cheers guys. Never nice to lose money.

Fortunately, it's only my second big loss in the last 12 years.

[bletherer] 18/4/2007 09:46

Oh okay, I hadn't checked today. But be aware that this is not the norm and once the excitement dies down the MMs are liable to increase the spread.

[tsmith2] 18/4/2007 09:43

Not at the mo you can buy at 27.4p and sell at 27p - picked up some at 27.4p

[bletherer] 18/4/2007 09:40

tsmith - you could well be right there but the spreads on this company mean you usually need about +10% just to break even. A pretty serious discouragement to short-term traders, and might lessen the interest unless a more concrete rumour starts doing the rounds.

[tsmith2] 18/4/2007 09:37

re MBO - there's enough in terms of a trading entity to allow this happen. the price touted I believe factors in the creditors position. For someone who didn't hold a 20-30 upside given todays movement is worth a small long position

[bletherer] 18/4/2007 09:36

Masurenguy - I posted before I read your post 416. Would not have bothered if I'd read that as you say substantially the same thing a lot more eloquently. Good luck to all continuing holders.

[sporticus] 18/4/2007 09:29

Sorry to hear it too JT, you lost a shed load.

MBO unlikely but possible.
bank and creditors need to be paid first and im guessing the bank will call in its overdraft before too long.

[masurenguy] 18/4/2007 09:28

Just saw you post #412 JTC. Bitter pill to swallow and a big hit to take.
If I was invested then I would probably hold on since they could become either an acquisition or break up target at a current market cap of just £5m.

However everyone has to take their own view and I don;t know what percentage of your share portfolio they represented.

[bletherer] 18/4/2007 09:28

Wonder if the director jumping ship yesterday was a sign of management strife. It's certainly stretching credulity to the limit to think they were unaware of this deterioration in trading two weeks ago when they issued the interims, in which their outlook statement was still making moderately positive noises. I sold out at a small loss a while back as unconvinced about CHUK's ability to bounce back in a difficult market. It's still on my watchlist but I might take CR's advice and remove it. A shifty management is the last thing shareholders need - personally it's always a huge red flag if events make it look like management is being "economical with the truth" in their trading statements. Such companies usually trade at a discount to the market - for good reason, mostly.

[recruiter] 18/4/2007 09:26

JTC is or will be okay, the money he has made on SOLA has probably offset this loss.
A day for holders to turn the pc off & do somwething that matters like going out with the family for a day.

[masurenguy] 18/4/2007 09:24

Genuinely sorry to see this profit warning so soon after the recent dialogue here. I'm afraid that it does not look good and the recent GCI 'Avoid' advice on April 7th proved to be somewhat prescient.

There are a few questions concerning management that come to the fore here.

1. The Interim Statement, issued on April 3rd, stated that "ChoicesUK is well placed to complete its recovery plan......reduced costs and established margins should result in positive cashflow for the final 24 weeks of the financial period". Yet just 2 weeks later a profit warning is issued stating that the company "now expects that the financial performance for the current period will be substantially below market expectations". They are basing this on just 4 weeks sales up until April 7th ! This is just 4 days after the Interims were released and I would be incredulous if management had absolutely no idea of trading performance over that 4 week period just 4 days prior to its conclusion !

2. I find it incredible that 4 weeks trading is suddenly going to have such a major impact over a complete 24 week period. Yes I know it included Easter and that the weather was unseasonally good for at least half of that time but it is not as critical as the Christmas period. Not disputing that it is an important period but one has to really question whether it is being used to explain some other deeper rooted difficulties !

3. Why did Michael de Kare-Silver resign so abruptly two days ago after just 3 months as an NXD ? There was a comment in the interims that "we will benefit from his considerable experience in internet trading and electronic commerce" and yet 2 weeks later he has suddenly gone and 2 days after that there is a profit warning. Obviously we don't know all the reasons for his brief tenure but the impression created by the timing of his departure can hardly be viewed as positive !

4. I don't think that there is any reason to question the honesty of the new Chairman either at CHUK or previously at Homebuy. However I think that there were valid reasons to question his credibility as a result of his history at Homebuy and therefore to question the Boards judgement on his subsequent appointment here. He has only just taken over so cannot be tainted by the profit warning only 2 weeks following his appointment but one has to ask whether the general Board credibility issue, that now inevitably follows from this sudden profit warning, will be mitigated in any way by his presence at the helm even, if he is only (as some have maintained) just a figurehead !

With Retail business declining, Local business flat and Direct expanding into a very competitive marketplace, the forward picture was already fraught with potential challenges. Management have now really shot themselves in the foot and the ensuining impact on their credibility could be a real handicap on the share price for some time to come in my opinion.

I think shareholders deserve much greater transparency here and the further announcement "after assessing its strategic and financial options" should be issued as soon as possible.

The shares are down 36% after the first hour this morning. Even at this price I personally would not be tempted to buy in since there are far too many negatives to make this an attractive recovery play and management do not exactly inspire me with confidence.

My view does not constitute advice to anyone to either buy or sell since everyone should do their own research and make their own decisions. I hope that I'm wrong and that JTC & GT recover a good chunk of their current shortfall but this one is now finally off my watchlist !

[tsmith2] 18/4/2007 09:18

I hear a MBO maybe in the offing - 35p, only a rumour at this stage, opened a relatively small long position

[stegrego] 18/4/2007 08:32

I dont think you will regret it JT - sure you can turn it around elsewhere.

Best of luck.

[topvest] 18/4/2007 08:32

Well it's a bit of a change compared with the statement two weeks ago..ouch!

[jtcod] 18/4/2007 08:30

Sporticus
To be fair to you, you have been trying to warn us for some time now.

I am quite happy to admit that I was clearly wrong on Choices.

The debt is far to high now for me to hang out for a turn around after a profit warning like todays.

I have decided to take a very low offer for the lot at 19p because I believe there is a very real risk that the company will go down.

I have also lost trust in this managements reporting of events.

Regards to all investors and as ever, all in my somewhat 'tarnished' opinion.;-
JT

[jimtid] 18/4/2007 08:24

Doesnt look like this one will reach 1.50p in 12 months, more like 10.5p

[lord santafe] 18/4/2007 07:51

Remember JSP, shop shares always bounce. History will tell you that on nearly all shop shares that crashed.

[lord santafe] 18/4/2007 07:51

Looks a bargain, shops for just 3.2m market cap, wow. One to watch.

[tonyx] 18/4/2007 07:49

Ouch! I would expect an open around 15-20p.

[cockneyrebel] 18/4/2007 07:30

Oh well, sorry guys but I did warn yiu a fortnight ago.

Tell me how this co never knew all this a fortnight ago when they were far more upbeat?

A sceptic might say the link with Homebuy says this is run by a crook....make your own mind up.

Personally I'd permanently remove these from your watch list if I were you.

CR

[arthur_lame_stocks] 18/4/2007 07:19

Profit warning today:



"The Board does not believe that trading for the remainder of the current period
will make up for the poor performance over these four weeks. Consequently, it
now expects that the financial performance for the current period will be
substantially below market expectations.

The company is assessing its strategic and financial options and will make a
further announcement in due course."

[sporticus] 17/4/2007 12:22

"TUESDAY, 16 April 2007"
they don't even know what day of the week it is.

[sporticus] 17/4/2007 11:46

"TUESDAY, 16 April 2007 -- ChoicesUK plc announces that Michael de Kare-Silver
has resigned from the Board as a non-executive director, with immediate effect,
to focus on other commitments."

Could this be a vote of no confidence in Chuks online hopes? Discuss.